Goods and Services Tax Bill 2009

DR 37/2009

Goods And Services Tax Bill 2009

An act to provide for the imposition and collection of goods and services tax and for matters connected therewith.

ENACTED by the Parliament of Malaysia as follows:

PART I

PRELIMINARY

1. Short title and commencement

(1) This act may be cited as the Goods and services Tax Act 2009.

(2) This act comes into operation on a date to be appointed by the Minister by notification in the Gazette and the Minister may appoint different dates for the coming into operation of different parts or different provisions of this act.

2.Interpretation

in this act, unless the context otherwise requires-

"this act" includes any subsidiary legislation made under this act;

"consideration" in relation to the supply of goods or services to any person, includes any payment made or to be made, whether in money or otherwise, or any act or forbearance, whether or not voluntary, in respect of, in response to, or for the inducement of, the supply of goods or services, whether by the person or by any other person:

Provided that a deposit, whether refundable or not, given in respect of the supply of goods or services shall not be considered as payment made for the supply unless the supplier applies the deposit as consideration for the supply;

"goods" means any kind of movable and immovable property but excludes money except-

(a) a bank note or coin before it becomes legal tender in Malaysia or in any other country; or

(b) a collector’s piece, investment article or item of numismatic interest;

"tax" means goods and services tax;

"input tax" means-

(a) any tax on any taxable supply of goods or services to a taxable person; and

(b) any tax paid or to be paid by a taxable person on any importation of goods,

and the goods or services are used or are to be used for the purposes of any business carried on or to be carried on by the taxable person:

Provided that where the goods or services are used or are to be used partly for the purposes of any business carried on or to be carried on by the taxable person and partly for other purposes, tax on the supply and importation shall be apportioned so that only so much as is attributable to the purposes of his business is counted as his input tax;

"output tax" means any tax on any taxable supply of goods or services made by a taxable person in the course or furtherance of his business in Malaysia;

"prescribed" means prescribed by regulations made under this act;

"document" has the meaning assigned to it in section 3 of the evidence act 1950 [Act 56];

"excise duty" has the meaning assigned to it in section 2 of the excise act 1976 [Act 176];

"customs duty" has the meaning assigned to it in section 2 of the customs act 1967 [Act 235];

"electronic" has the meaning assigned to it in section 5 of the electronic Government activities act 2007 [Act 680];

"import" has the meaning assigned to it in section 2 of the customs act 1967;

"invoice" includes any document similar to an invoice;

"tax invoice" means an invoice required to be issued by a taxable person under section 33;

"excise control" has the meaning assigned to it in section 2 of the excise act 1976;

"customs control" has the meaning assigned to it in section 2 of the customs act 1967;

"designated area" means Labuan, Langkawi or Tioman;

"director General" means the director General of customs and excise appointed under section 3 of the customs act 1967;

"computer" has the meaning assigned to it in section 2 of the computer crimes act 1997 [Act 563];

"Labuan" means the island of Labuan and its dependent islands, namely, rusukan Besar, rusukan Kecil, Keraman, Burong, Papan and Daat;

"Langkawi" means the island of Langkawi and all adjacent islands lying nearer to the island of Langkawi than to the mainland;

"Malaysia" means the territories of the Federation of Malaysia, the territorial waters of Malaysia and the sea-bed and subsoil of the territorial waters, and includes any area extending beyond the limits of the territorial waters of Malaysia, and the sea-bed and subsoil of any such area, which has been or may hereafter be designated under the laws of Malaysia as an area over which Malaysia has sovereign rights for the purposes of exploring and exploiting the natural resources, whether living or non-living;

"Minister" means the Minister charged with the responsibility for finance;

"electronic notice" means any document transmitted by the registered user by way of electronic service;

"registered person" means a person who is registered under Part IV;

"taxable person" means any person who is or is liable to be registered under this act;

"officer of goods and services tax" means any officer of customs acting in the fulfilment of his duties under this act, whether the duties are assigned to him specially or generally, or expressly or by implication;

"senior officer of goods and services tax" means-

(a) any senior officer of customs as defined in section 2 of the customs act 1967; or

(b) any officer of goods and services tax conferred with the powers of a senior officer of goods and services tax under section 5;

"officer of customs" has the meaning assigned to it in section 2 of the customs act 1967;

"supply" has the meaning assigned to it in section 4;

"taxable supply" means a supply of goods or services, other than an exempt supply but includes a zero-rated supply;

"zero-rated supply" means a zero-rated supply under section 17;

"exempt supply" means an exempt supply determined under section 18;

"owner"-

(a) in respect of goods, includes any person being or holding himself out to be the owner, or person in possession of, or beneficially interested in, or having any control of, or power of disposition over, the goods;

(b) in respect of a vessel, includes any person acting as an agent for the owner of the vessel or who receives freight or other charges payable in respect of the vessel;

"conveyance" includes any vessel, train, vehicle, aircraft or any other means of transport by which persons or goods can be carried;

"services" means anything done or to be done including the granting, assignment or surrender of any right or the making available of any facility or advantage but excludes supply of goods or money;

"imported services" means any services by a supplier who belongs in a country other than Malaysia or who carries on business outside Malaysia, to a recipient who belongs in Malaysia, and the services are consumed in Malaysia;

"electronic service" means the service provided by the director General to the registered user under section 170;

"arrangement" means any agreement, contract, plan, understanding, scheme, trust, grant, covenant, disposition or transaction and includes all steps by which it is carried into effect;

"business" has the meaning assigned to it in section 3;

"surcharge" in respect of any default in payment of any instalment, means the charge accrued under subsection 52(3);

"flat rate addition" means the prescribed flat rate addition under section 75;

"appointed date" means the date appointed by the Minister by notification in the Gazette for the coming into operation of section 9 and Parts xvi and xvii;

"usual place of residence" means-

(a) in relation to a body corporate, the place where it is incorporated or otherwise legally constituted;

(b) in relation to an unincorporated body of persons, the place where the body has its centre of administration;

(c) in relation to an individual, the place where he usually resides;

"taxable period" means any category of taxable period as may be assigned by the director General to each taxable person under section 40;

"Tioman" means the Island of Tioman and the islands of Soyak, Rengis, Tumok, Tulai, Chebeh, Labas, Sepoi and Jahat;

"money" includes currencies whether of Malaysia or any other country.

3. Meaning of "business"

(1) in this act, "business" includes any trade, commerce, profession, vocation or any other similar activity, whether or not it is for a pecuniary profit.

(2) Without prejudice to the generality of anything else in this act, the following are deemed to be the carrying on of a business:

(a) the provision by a club, association, society, management corporation, joint management body or organisation (for a subscription or other consideration) of the facilities or advantages available to its members or parcel proprietors, as the case may be; and

(b) the admission, for a consideration, of persons to any premises.

(3) anything done in connection with the termination or intended termination of a business is treated as being done in the course or furtherance of that business.

(4) subject to the second schedule, the disposition of any business as a going concern, or of its assets or liabilities (whether or not in connection with its reorganisation or winding-up), is a supply made in the course or furtherance of the business.

(5) Where any person, in carrying on any trade, commerce, profession, vocation or any other similar activity accepts any office, any services supplied by the person as the holder of the office shall be treated as supplied in the course or furtherance of that trade, commerce, profession, vocation or any other similar activity.

4. Meaning of "supply"

(1) subject to subsections (2) and (3), "supply" means all forms of supply, including supply of imported services, done for a consideration and anything which is not a supply of goods but is done for a consideration is a supply of services.

(2) Matters to be treated as a supply of goods or a supply of services shall be as specified in the First schedule.

(3) Matters to be treated as neither a supply of goods nor a supply of services shall be as specified in the second schedule.

(4) The Minister may, by order published in the Gazette, amend the First schedule and second schedule.

(5) any order made under subsection (4) shall be laid before the Dewan Rakyat.

PART II

ADMINISTRATION

5. Direct or General and other officers and their responsibilities

(1) The director General shall have the superintendence of all matters relating to goods and services tax, subject to the direction and control of the Minister.

(2) subject to the general direction and supervision of the director General, an officer of customs holding the rank of superintendent or any rank higher than the rank of superintendent shall have and exercise all powers conferred on the director General under this act other than those conferred by sections 8, 63, 77, 78, 176 and 177.

(3) any person other than an officer of customs may be appointed by or employed with the concurrence of the director General for any duty or service relating to goods and services tax and the person shall be deemed to be an officer of goods and services tax.

(4) The director General may, by authorisation in writing, confer on any officer not being a senior officer of goods and services tax all or any of the powers of a senior officer of goods and services tax for a period not exceeding ninety days in respect of any one authorisation.

(5) any officer of goods and services tax shall have all the duties and powers to enforce and ensure due compliance with the provisions of this act.

6. Recognition of office

(1) every officer of goods and services tax when discharging his duties shall, on demand made by any person, declare his office and produce to the person the authority card or badge prescribed under section 8A of the customs act 1967 or in the case of any officer of goods and services tax not being an officer of customs, any other authority card as may be approved by the director General.

(2) it shall not be an offence for any person to refuse to comply with any request, demand or order made by any officer of goods and services tax acting or purporting to act under this act if the officer refuses to declare his office and produce his authority card or badge on demand being made by the person.

(3) any person, not being an officer of goods and services tax, who unlawfully wears, uses, possesses or displays, otherwise than in the course of a stage play or other theatrical performance, any authority card or badge referred to in subsection (1), commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

7. Officers to be public servants

All officers of goods and services tax shall be deemed to be public servants within the meaning of the Penal code [Act 574].

8. Confidentiality of information

(1) every person, having any official duty or being appointed or employed under this act, shall regard and deal with all documents, information, returns or declarations relating to the business, value of the supply of goods or services of any taxable person or value of imported goods as confidential.

(2) subject to subsection (4), every person having possession or control over any document, information, return or declaration or copies thereof in relation to the business or the value of the supply of goods or services of any taxable person or value of imported goods, who at any time, otherwise than for the purposes of this act or with the express authority of the director General-

(a) communicates or attempts to communicate the information or anything contained in the document, return or declaration or copies thereof to any person; or

(b) suffers or permits any person to have access to any information or to anything contained in the document, return or declaration or copies thereof, commits an offence.

(3) no person having any official duty or being appointed or employed under this act or who is referred to in subsection (4) shall be required to produce in any matters or proceedings in any court or tribunal any document, information, return or declaration or to divulge or communicate in the matters or proceedings, any matter or thing, coming under his notice in the performance of his duties under this act, except as may be necessary for the purpose of carrying into effect the provisions of this act or in order to institute a prosecution or in the course of a prosecution for any offence committed under this act.

(4) The director General may, as he deems fit, transmit or communicate any document, information, return or declaration referred to in subsection (1) or anything contained therein, to the director General of inland revenue or the chief statistician which may be required in the performance of his official duty.

(5) notwithstanding subsection (4), the Minister may, as he deems fit, allow the director General to transmit or communicate any document, information, return or declaration referred to in subsection (1) or anything contained therein to any other person.

PART III

IMPOSITION AND SCOPE OF TAX

9. Imposition and scope of goods and services tax

(1) a tax to be known as goods and services tax, shall be charged and levied on-

(a) any supply of goods or services made in Malaysia, including anything treated as a supply under this act; and

(b) any importation of goods into Malaysia.

(2) Tax shall be charged on any supply of goods or services made in Malaysia where it is a taxable supply made by a taxable person in the course or furtherance of any business carried on by him.

(3) Tax chargeable on any supply of goods or services is a liability of the person making the supply and subject to Part v, becomes due and payable at the time of supply.

(4) Tax on any importation of goods into Malaysia shall be charged, levied and payable as if it were a customs duty or excise duty and as if the imported goods are dutiable and liable to customs duty or excise duty.

(5) For the purposes of this act, "supply of goods or services made in Malaysia" shall be treated as goods or services supplied in Malaysia.

10. Rate of tax

(1) Tax shall be charged and levied at the rate fixed under this section on the supply of goods or services or on the importation of goods by reference to the value of the supply or importation as determined under this act.

(2) The Minister may, by order published in the Gazette-

(a) fix the rate of tax to be charged on the supply of goods or services or on the importation of goods; and

(b) vary or amend the rate of tax fixed under paragraph (a).

(3) any order made under subsection (2) shall, at the next meeting of the dewan rakyat, be laid on the table of the dewan rakyat and shall, at the expiration of one hundred and twenty days of being so laid or of such extended period as the dewan rakyat may by resolution direct, cease to have effect if and insofar as it is not confirmed by resolution passed by the Dewan Rakyat within the said one hundred and twenty days or, if such period has been extended, within such extended period.

(4) Where an order ceases to have effect in whole or in part as provided in subsection (3), any tax charged and levied in pursuance of the order, as the case may be, of such part thereof as ceases to have effect shall, subject to subsections (5) and (6), be refundable to the persons by whom the tax was paid.

(5) Unless the Minister otherwise directs, no tax refundable under subsection (4) shall be refunded, unless the person by whom the tax was paid makes a claim in writing to the director General within one year from the date on which the order ceases to have effect in whole or in part and the claim shall contain such particulars as the director General may require.

(6) The director General may reduce or disallow any tax refundable under subsection (4) to the extent that the refund would unjustly enrich the person by whom the tax was paid.

11. Time of supply

(1) This section shall apply in determining the time of supply of goods or services for the purposes of the charge to tax except as otherwise provided in this act.

(2) subject to subsections (4), (5), (6) and (7), the time of supply of goods shall be-

(a) at the time of removal of the goods if the goods are to be removed;

(b) at the time when the goods are made available to the person to whom the goods are supplied if the goods are not to be removed;

(c) where goods, being sent or taken on approval or sale or return or similar terms, are removed before it is known whether a taxable supply will take place, at the time when it becomes certain that the taxable supply has taken place or twelve months after the removal, whichever is the earlier.

(3) subject to subsections (4), (5) (6) and (8), the time of supply of services shall be at the time when the services are performed.

(4) Where, before the time applicable under subsection (2) or (3), the person making the supply issues a tax invoice in respect of it or where, before the time applicable under paragraph (2)(a) or (b) or subsection (3), he receives a payment in respect of it, the supply shall, to the extent covered by the invoice or payment, be treated as taking place at the time the invoice is issued or the payment is received, as the case may be, or whichever is the earlier.

(5) Where, within twenty-one days after the time applicable under subsection (2) or (3), the person making the supply issues a tax invoice in respect of it, then, the supply shall, to the extent that it is not treated as taking place at the time referred to in subsection (4) be treated as taking place at the time the invoice is issued.

(6) on the request made in writing by a taxable person, the director General may in writing, as he deems fit, alter the time at which supplies made by the taxable person are to be treated as taking place.

(7) Where there is a supply of goods by virtue only of a transfer or disposal of business assets under subparagraph 4(1) of the First schedule, the time of supply is at the time when the goods are transferred or disposed of.

(8) Where there is a supply of services by virtue only of subparagraph 4(3) of the First schedule, the time of the supply is at the time when the goods are appropriated to the use referred to in the subparagraph.

(9) notwithstanding subsections (1), (2), (3), (4), (5), (6), (7) and (8) where there is-

(a) a supply of goods or services for a consideration the whole or part of which is determined or payable periodically, or from time to time, or at the end of any period;

(b) a supply of goods for a consideration the whole or part of which is determined at the time when the goods are appropriated for any purpose;

(c) a supply of services by virtue of subparagraph 4(3) of the First schedule over a period of time;

(d) a supply of goods or services under any prescribed circumstances,

the time at which the supply made in the course or furtherance of any business in Malaysia shall be determined according to the regulations made under this act.

(10) For any case referred to in subsection (9), the regulations may provide for goods or services to be treated as separately and successively supplied at prescribed times or intervals.

12. Place of supply

(1) This section shall apply for determining, for the purposes of the charge to tax, whether goods or services are supplied in Malaysia.

(2) Where the supply of any goods involves their removal from a place in Malaysia to another place in Malaysia, the goods shall be treated as supplied in Malaysia if the goods are in Malaysia and where the supply of goods involves their removal from a place outside Malaysia to another place outside Malaysia, the goods shall be treated as supplied outside Malaysia.

(3) Where the supply of any goods involves their removal from a place in Malaysia to a place outside Malaysia, the goods shall be treated as supplied in Malaysia and where the supply of goods involves their removal from a place outside Malaysia to a place in Malaysia, the goods shall be treated as supplied outside Malaysia.

(4) a supply of services shall be deemed as made-

(a) in Malaysia if the supplier belongs in Malaysia; and

(b) in another country, if the supplier belongs in the other country.

13. Supply of imported services

(1) Where imported services, being a taxable supply if made in Malaysia, is supplied to a person (hereinafter referred to as the "recipient") for the purposes of any business carried on by him, the supply shall be treated as a supply to and by the recipient in the course or furtherance of his business, and the supply were a taxable supply.

(2) Where the recipient is a taxable person, the provisions of this act shall apply to him with respect to the supply of imported services.

(3) Where tax is due and payable under subsection (1) and the recipient is a person other than a taxable person, he shall be liable for any tax due and payable on the supply of imported services.

(4) notwithstanding section 11 and for the purposes of subsection (1), the time of supply of imported services shall, to the extent covered by any payment by the recipient, be treated to have been made when the supplies are paid for.

14. Place where supplier or recipient of services belongs

(1) The supplier of services shall be treated as belonging in a country if-

(a) he has in that country a business establishment or fixed establishment and no such establishment elsewhere;

(b) he has no such establishment in any country but his usual place of residence is in that country; or

(c) he has such establishments both in that country and elsewhere and his establishment which is most directlyconcerned with the supply is in that country.

(2) The recipient of services shall be treated as belonging in a country if-

(a) he has his usual place of residence in that country where the supply is made to him as an individual and received by him otherwise than for the purposes of any business carried out by him; and

(b) where paragraph (a) does not apply-

(i) he has in that country a business establishment or fixed establishment and no such establishment elsewhere;

(ii) he has no such establishment in any country but his usual place of residence is in that country; or

(iii) he has such establishments both in that country and elsewhere and his establishment at which, or for the purposes of which, the services are most directly used or to be used is in that country.

(3) For the purposes of this section, a fixed establishment in any country includes a branch or an agency through which a person carries on a business in that country.

15. Value of supply of goods or services

(1) subject to the Third schedule, the value of any supply of goods or services shall be determined in accordance with this section.

(2) Where the supply is for a consideration in money, the value of the supply shall be taken to be an amount, with the addition of the tax chargeable, equal to the consideration.

(3) Where the supply is for a consideration not in money, the value of the supply shall be taken to be the open market value of that consideration.

(4) Where the supply is for a consideration not wholly in money, the value of the supply shall be taken to be an amount, with addition of the tax chargeable, equal to the aggregate of-

(a) to the extent that the supply is for a consideration in money, the amount of the money; and

(b) to the extent that the supply is not for a consideration in money, the open market value of that consideration.

(5) Where the supply is not for a consideration, the value of the supply shall be taken to be the open market value of that supply.

(6) Where the supply is not the only matter to which a consideration in money relates, the supply shall be deemed to be for the part of the consideration as is properly attributable to the supply.

(7) For the purposes of this section, the value of the supply of goods shall include excise duty paid or is to be paid where applicable.

(8) The Minister may, by order published in the Gazette, amend the Third schedule and provide for the determination of the value of a supply otherwise than in accordance with this section.

(9) any order made under subsection (8) shall be laid before the dewan rakyat.

16. Value of goods imported

The value of goods imported into Malaysia shall be the sum of the following amounts, namely-

(a) the value of the goods for the purpose of customs duty determined in accordance with the customs act 1967;

(b) the amount of customs duty, if any, paid or is to be paid on the goods; and

(c) the amount of excise duty, if any, paid or is to be paid on the goods.

17. Zero-rated supply

(1) a zero-rated supply is-

(a) any supply of goods or services determined to be a zerorated supply by the Minister under subsection (4); and

(b) any supply of goods if the goods are exported.

(2) Where a taxable person supplies goods or services and the supply is zero-rated, whether or not tax would be chargeable on the supply apart from this section, no tax shall be charged on the supply.

(3) The supply referred to in subsection (2) shall, in any other respect, be treated as a taxable supply and the rate at which tax is treated as charged on the supply shall be zero percent.

(4) The Minister may, by order published in the Gazette, determine any supply of goods or services in Malaysia to be a zero-rated supply.

(5) any order made under subsection (4) shall, at the next meeting of the dewan rakyat, be laid on the table of the dewan rakyat and shall, at the expiration of one hundred and twenty days of being so laid or of such extended period as the dewan rakyat may by resolution direct, cease to have effect if and insofar as it is not confirmed by resolution passed by the dewan rakyat within the said one hundred and twenty days or, if such period has been extended, within such extended period.

(6) Where an order ceases to have effect in whole or in part as provided in subsection (5), any tax charged and levied in pursuance of the order, as the case may be, of such part thereof as ceases to have effect shall, subject to subsections (7) and (8), be refundable to the persons by whom the tax was paid.

(7) Unless the Minister otherwise directs, no tax refundable under subsection (6) shall be refunded, unless the person by whom the tax was paid makes a claim in writing to the director General within one year from the date on which the order ceases to have effect in whole or in part and the claim shall contain such particulars as the director General may require.

(8) The director General may reduce or disallow any tax refundable under subsection (6) to the extent that the refund would unjustly enrich the person by whom the tax was paid.

(9) Where any goods specified in the order made under subsection (4) are imported into Malaysia, no tax shall be chargeable on their importation.

(10) Where any goods are claimed to have been or were to be exported and the supply of the goods is a zero-rated supply, not being goods zero-rated if supplied for home consumption and-

(a) the goods are found in Malaysia after the date on which they were claimed to have been or were to be exported; and

(b) the presence of the goods in Malaysia after that date has not been approved by the director General,

the tax that would have been chargeable on the supply but for the zero-rating shall become due and payable forthwith by the supplier or by any person in whose possession the goods are found in Malaysia and the goods may be liable to seizure under this act.

18. Exempt supply

(1) an exempt supply is a supply of any goods or services which shall not be subject to the imposition of tax under section 9.

(2) The Minister may, by order published in the Gazette, determine any supply of goods or services in Malaysia to be an exempt supply.

(3) any order made under subsection (2) shall, at the next meeting of the dewan rakyat, be laid on the table of the dewan rakyat and shall, at the expiration of one hundred and twenty days of being so laid or of such extended period as the dewan rakyat may by resolution direct, cease to have effect if and insofar as it is not confirmed by resolution passed by the dewan rakyat within the said one hundred and twenty days or, if such period has been extended, within such extended period.

(4) Where an order ceases to have effect in whole or in part as provided in subsection (3), any tax charged and levied in pursuance of the order, as the case may be, of such part thereof as ceases to have effect shall, subject to subsections (5) and (6), be refundable to the persons by whom the tax was paid.

(5) Unless the Minister otherwise directs, no tax refundable under subsection (4) shall be refunded, unless the person by whom the tax was paid makes a claim in writing to the director General within one year from the date on which the order ceases to have effect in whole or in part and the claim shall contain such particulars as the director General may require.

(6) The director General may reduce or disallow any tax refundable under subsection (4) to the extent that the refund would unjustly enrich the person by whom the tax was paid.

(7) Where any goods specified in the order made under subsection (2) are imported into Malaysia, no tax shall be chargeable on their importation.

PART IV

REGISTRATION

19. Registration of taxable person

(1) The registration of taxable persons under this act shall be in accordance with the provisions of this Part and in the manner as may be prescribed.

(2) in this Part-

(a) references to supplies are references to supplies made in the course or furtherance of business;

(b) references to value of a supply of goods or services are references to value determined on the basis that no tax is chargeable on the supply or no flat rate addition is included in the consideration of the supply.

20. Liability to be registered

(1) The Minister may, by order published in the Gazette, specify the amount of taxable supply to give effect to the provisions of this section.

(2) any order made under subsection (1) shall be laid before the dewan rakyat.

(3) subject to subsections (5) and (6), any person who is not registered who makes any taxable supply is liable to be registered-

(a) at the end of any month, where the total value of all his taxable supplies in that month and the eleven months immediately preceding the month has exceeded the amount of taxable supply specified under subsection (1); or

(b) at the end of any month, where there are reasonable grounds for believing that the total value of all his taxable supplies in that month and the eleven months immediately succeeding the month will exceed the amount of taxable supply specified under subsection (1).

(4) subject to subsections (5) and (6), where any business carried on by any taxable person is transferred to another person as a going concern under section 69 and the transferee is not registered at the time of the transfer, the transferee is liable to be registered at that time if-

(a) the total value of all his taxable supplies in the period of twelve months immediately preceding the time of the transfer has exceeded the amount of taxable supply specified under subsection (1); or

(b) there are reasonable grounds for believing that the total value of all his taxable supplies in the period of twelve months beginning from the time of the transfer will exceed the amount of taxable supply specified under subsection (1).

(5) in determining the value of any person’s supply for the purposes of paragraphs (3)(a) and (4)(a), any supply made at the time when he was previously registered shall be disregarded if-

(a) his registration was cancelled otherwise than under subsection 26(3); and

(b) the director General is satisfied that before his registration was cancelled, he had given all the information required by the director General in order to determine whether to cancel the registration.

(6) in determining the value of any person’s supplies for the purposes of subsections (3) and (4), the following supplies shall be excluded:

(a) supplies of goods that are capital assets of the business in the course or furtherance of which they are supplied or to be supplied;

(b) supplies of imported services;

(c) supplies made in accordance with the Warehousing scheme under section 71; and

(d) supplies made within or between designated areas under section 162.

(7) any person who is liable to be registered under subsection (3) or (4) but fails to register commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

21. Notification of liability and registration

(1) a person who is liable to be registered under subsection 20(3) shall notify the director General of the liability by applying to be registered in the prescribed form within twenty-eight days from the end of the month referred to in paragraph 20(3)(a) or (b), as the case may be.

(2) The director General shall register any person who notifies his liability under subsection (1) with effect from the first day of the following month in which the twenty-eighth day falls or from such earlier date as may be agreed between the director General and him but such date shall not be earlier than the date he becomes liable to be registered.

(3) a person who is liable to be registered under subsection 20(4) shall notify the director General of the liability by applying to be registered in the prescribed form within twenty-eight days from the time when the business is transferred.

(4) The director General shall register any person who notifies his liability under subsection (3) with effect from the date when the business is transferred.

(5) Where a taxable person fails to comply with subsection (1) or (3)-

(a) the director General shall register him on the date as the director General may determine but not earlier than the date his liability to be registered became known or made known to the director General; and

(b) the person shall be liable to pay a late registration penalty equal to the specified percentage of the tax which should have been paid from the date he should have been registered to the date he is registered and hereinafter referred to as late registration period.

(6) The percentage referred to in subsection (5) shall apply to the following late registration periods:

(a) five percent if within thirty days;

(b) additional five percent after thirty days but not exceeding sixty days; and

(c) additional three percent for every subsequent thirty days or part thereof,

and subject to a maximum of twenty-five percent.

(7) references to registration in this Part are references to registration in a register kept with the director General in the form as he may determine for the purposes of this act.

(8) any person who contravenes subsection (1) or (3) commits an offence.

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